What is govt's 'tearing hurry' to 'fix' RBI capital framework: Chidambaram
New Delhi, Nov 11: Former Union finance minister P Chidambaram Sunday asked the Centre what was its "tearing hurry" to "fix" the capital framework of Reserve Bank of India when the ruling dispensation had just four months to complete the term.
In a series of tweets, the senior Congress leader slammed the government for allegedly seeking funds from the RBI despite claiming that its (Centre) fiscal math was correct.
"The NDA government has competed 4 years and 6 months of its term. It has effectively 4 months left. What is the tearing hurry to 'fix' the capital framework of RBI?" he said.
Chidambaram said if the government did not need any more money this financial year, why was it "mounting pressure" on the central bank in the last four months of its tenure.
"Why did it keep silent for 4 years and 6 months?" he said.
The Congress leader said the government had claimed that its "fiscal math is correct" and "boasts" that it had given up Rs 70,000 crore of borrowing for 2018-19.
"If so, why does it need money from the reserves of RBI this year?" he said.
The central government had on Friday said it was discussing an "appropriate" size of capital reserves that the central bank must maintain, but denied seeking a massive capital transfer from the RBI.
The RBI has a massive Rs 9.59 lakh crore reserves and the government, if reports are to be believed, wants the central bank to part with a third of that fund -- an issue which along with easing of norms for weak banks and raising liquidity has brought the two at loggerheads in recent weeks.
Economic Affairs Secretary Subhash Chandra Garg took to Twitter on Friday to clarify that the government was not in any dire need of funds and that there was no proposal to ask the RBI to transfer Rs 3.6 lakh crore.
"There is no proposal to ask RBI to transfer (Rs) 3.6 or (Rs) 1 lakh crore, as speculated," he tweeted.
"Government's FD (fiscal deficit) in FY 2013-14 was 5.1%. From 2014-15 onwards, Government has succeeded in bringing it down substantially. We will end the FY 2018-19 with FD of 3.3%. Government has actually foregone (Rs) 70,000 crore of budgeted market borrowing this year," Garg said.
The official said the only proposal under discussion was to "fix appropriate economic capital framework of RBI". Economic capital framework refers to the risk capital required by the central bank while taking into account different risks.
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Put petty politics aside; it's not about one party, but India: Rahul on TMC's loss in polls
New Delhi (PTI): Congress leader Rahul Gandhi on Tuesday termed the BJP's victory in Bengal and Assam assembly polls a "theft" of the mandate, and a big step forward in the saffron party's mission to "destroy" Indian democracy.
Gandhi also came out in support of the TMC, which has been trounced by the BJP in the polls, and urged those gloating over the loss of Mamata Banerjee's party to put petty politics aside.
"Some in the Congress, and others, are gloating about TMC's loss.They need to understand this clearly - the theft of Assam and Bengal's mandate is a big step forward by the BJP in its mission to destroy Indian democracy," Gandhi said in a post on X.
"Put petty politics aside. This is not about one party or another. This is about India," he said in his post.
The BJP ousted Trinamool Congress from power in Bengal and captured power for the third time in a row in Assam in results of assembly polls declared on Monday.
